Danaher 2009 Annual Report Download - page 85

Table of Contents
  
   

Service cost $2.0 $7.3 $13.2 $ 14.9
Interest cost 75.9 72.7 31.0 32.0
Expected return on plan assets (84.1) (89.4) (18.8) (23.8)
Amortization of prior service credit — — (0.3) (0.3)
Amortization of net (gain) loss 9.6 4.1 3.3 (0.8)
Curtailment and settlement (gains) / losses recognized — — 1.4 —
Net periodic pension (benefit) cost $3.4 $(5.3) $29.8 $22.0

 
   
Discount rate 6.25% 6.00% 5.15% 5.15%
Expected long-term return on plan assets 8.00% 8.00% 5.80% 5.95%
Rate of compensation increase 4.00% 4.00% 3.10% 3.20%
Included in accumulated other comprehensive income at December 31, 2009 are the following amounts that have not yet been recognized in net periodic pension
cost: unrecognized prior service credits of $2.8 million ($2.1 million, net of tax) and unrecognized actuarial losses of $502.0 million ($324.9 million, net of
tax). The unrecognized losses and prior service costs, net, is calculated as the difference between the actuarially determined projected benefit obligation and the
value of the plan assets less accrued pension costs as of December 31, 2009. The prior service credits and actuarial loss included in accumulated
comprehensive income and expected to be recognized in net periodic pension costs during the year ending December 31, 2010 is $0.3 million ($0.2 million, net
of tax) and $21.9 million ($15.9 million, net of tax), respectively. No plan assets are expected to be returned to the Company during the year ending
December 31, 2010.
Selection of Expected Rate of Return on Assets
For the years ended December 31, 2009, 2008, and 2007, the Company used an expected long-term rate of return assumption of 8.0% for the Company’s U.S.
defined benefit pension plan. The Company intends on using an expected long-term rate of return assumption of 8.0% for 2010 for its U.S. plan. The expected
long-term rate of return assumption for the non-U.S. plans was determined on a plan-by-plan basis based on the composition of assets and ranged from 0.75%
to 8.0% and 1.5% to 8.25% in 2009 and 2008, respectively, with a weighted average rate of return assumption of 5.80% and 5.95% in 2009 and 2008,
respectively.
Plan Assets
The U.S. plan’s goal is to maintain between 60% and 70% of its assets in equity portfolios, which are invested in individual equity securities or funds that are
expected to mirror broad market returns for equity securities or in assets with characteristics similar to equity investments, such as venture capital funds and
partnerships. Asset holdings are periodically rebalanced when equity holdings are outside this range. The balance of the U.S. plan asset portfolio is invested in
corporate bonds, bond index funds or U.S. Treasury securities. Non-U.S. plan assets are invested in various insurance contracts, equity and debt securities
as determined by the administrator of each plan. The value of the plan assets directly affects the funded status of the Company’s pension plans recorded in the
financial statements.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2010 Powered by Morningstar® Document Research℠
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